Your Evening Briefing: Traders Prepare for a Long Bear Market

The same traders whose fear of the Fed sent markets hurtling into bear territory Monday are girding for a long dark night as stocks head for their longest slide in months. Investors are keen to see whether the central bank, which meets tomorrow, gives any indication as to whether it will raise rates at a faster clip. Stocks notwithstanding, President Joe Biden touted the humming US economy with its low unemployment, saying the powerful recovery from the pandemic recession will become more evident when inflation subsides. “I truly believe we made extraordinary progress by laying a new foundation for our economy,” Biden said Tuesday at a meeting of the AFL-CIO, the biggest US labor confederation. In addition to tapping the nation’s Strategic Petroleum Reserve to address high gas prices and working with European partners on plans to get Ukrainian grain to market, Biden cited proposals aimed at bringing down the cost of child care and prescription drugs and said the wealthiest Americans must “pay their fair share” in taxes. “I have a plan to bring down the cost of gas and food,” he said, seeking to position the Democratic Party for the coming midterm elections, but adding “it’s going to take time.” In Europe,​​ a new survey by economists shows many expect the Bank of England to raise interest rates faster and further than anticipated just a month ago as it battles the highest inflation in decades. As for all those investors out there watching their portfolios shrink, remember not to panic. Here’s your markets wrap.

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